CCI procures 9 lakh bales amidst low demand & pink bollworm infestation

Amidst low demand, infestation of pink bollworm has made cotton less attractive in the Indian market. Further, leaving farmers to knock on the Cotton Corporation of India’s (CCI) door. So far, the nodal agency has procured close to 9 lakh bales (at an MSP) worth around ₹3,600 crore this season.

The government has fixed MSP for medium staple cotton at ₹6,620 per quintal and for long staple cotton at ₹7,020 per quintal.

Speaking to CNBC-TV18, Lalit Kumar Gupta, chairman and managing director of CCI said, "We have procured close to 9 lakh bales across India. Now, our share of procurement is 30-40% daily arrival."

He added the pace of procurement across India touched 2 lakh bales per day. “Maximum procurement is in Telangana and Andhra Pradesh where prices are depressed.” The lowest market price for cotton in Telangana is around ₹5,500 per quintal and in Andhra Pradesh, it's around ₹4,200. Meanwhile, infestation is not a concern in these states.

Due to pink bollworm infestation, farmers in states like Punjab, Haryana and Rajasthan are finding it difficult to sell their cotton to CCI. While other states are providing good quality cotton, Gupta stated, cotton coming from Punjab, Haryana and Rajasthan are largely infested.

"In Punjab, Fazilka and Muktsar are two districts where quality is an issue. These two districts are affected by Pink bollworm. So, most of that cotton that is coming to CCI are either infested or damaged cotton. We cannot compromise on quality." Gupta added, "We need to purchase cautiously. We purchase cotton that meets quality standards."

CCI has procured cotton worth ₹120 crore in Punjab. The agency has been procuring close to 1,500-2,000 bales daily in the region. Gupta added farmers usually expect CCI to procure cotton even if the quality does not meet the standards. "We are having a coordination committee meeting with the different officials. We are coordinating with the government trying to address various concerns."

Meanwhile, in another region, where cotton prices have slumped is in Maharahtra. "CCI has set-up centres here and farmers are slowly coming to the centres."

The cotton production is estimated at 296 lakh bales for the 2023-24 (October-September) season – which will be the lowest in 15 years, as per Cotton Association of India (CAI).